Editor's note: This Data Dispatch is updated monthly and was last published May 3. The analysis includes current publicly traded U.S. equity real estate investment trusts that trade on the Nasdaq, NYSE or NYSE American with market capitalizations of at least $200 million. Click here to download these charts in Excel format.
Publicly listed U.S. equity REITs traded at a median 14.7% discount to their consensus S&P Capital IQ net asset value per-share estimates as of May-end, a further decline from the 8.9% discount at which they traded as of April-end.
Regional mall, office sectors lead the largest median discounts
Regional mall REITs traded at the largest discount to NAV, at a median of 38.6%. Within this sector, Macerich Co. traded at a discount of 51.4%, making it the eighth-largest discount to NAV among all U.S. equity REITs with above $200 million market capitalization. Likewise, Simon Property Group Inc., the largest mall REIT by market capitalization, closed May 31 at $114.65, 25.9% below its consensus NAV estimate of $154.62.
Following closely behind was the office sector, trading at a median discount of 34.7%. Office Properties Income Trust traded at the second-largest discount to NAV among all U.S. equity REITs with above $200 million market capitalization, at 57.5%. Three other office REITs — Hudson Pacific Properties Inc., Paramount Group Inc. and Piedmont Office Realty Trust Inc. — were on the list of REITs with the largest discounts across all sectors as of May 31.
Diversified REIT iStar Inc. led the overall list of REITs with the largest discounts during the month, closing May 31 at $17.40, 57.8% lower than its consensus NAV estimate of $41.24.
Gladstone Land maintains lead in REIT premium list
The farmland sector remained at the top of the premium list, trading at a median of 26.6%. Gladstone Land Corp., which significantly impacts the farmland sector's median, had the highest premium among all U.S. equity REITs with market capitalization of above $200 million, at 45.5%. Farmland owner Farmland Partners Inc. also traded at a premium of 7.7%, closing May 31 at $15.02.
Communication REITs followed at a median premium of 12.7%, while the casino sector came in third at 4.5%.
Next to Gladstone Land on the overall list of REITs with the highest premiums was healthcare-focused Welltower Inc., which traded at a premium of 38.9%. Rounding out the top five REITs with the largest premiums as of May-end were multifamily-focused Bluerock Residential Growth REIT Inc. at 31.1%, healthcare REIT LTC Properties Inc. at 25.3% and communications-focused American Tower Corp.at 22.0%.
